Two Ways MicroCap Companies Can Use Stock To Build A Profitable Business
In a recent post on MicroCapCompany.COM, Nick Coriano shared two ways microcap public companies can use stock to build a profitable business.
Coriano says; “Many of these companies have gone public too early or were forced to go public for one reason or another. Many of these CEOs thought that going public was the Magic Bullet. They figured being a public company was the answer to finding investors since many larger public companies are well capitalized. But the ugly truth is that going public does not guarantee that investors will buy your stock.”
According to Coriano, there are two ways that microcap public companies can use stock to build a profitable business;
1. Acquiring strategic management with corporate stock – “A potential investor in a microcap company or penny stock will undoubtedly look to see if the management is capable of achieving their business plan or continued growth. Microcap companies should utilize their currency, also known as their stock, to attract and retain industry sector Professionals in their field. A well-rounded board of directors and confident management team will bring confidence in the marketplace and attract investors. In addition, a good management team will help successfully scale a business.”
2. Buy profitable businesses with the public company stock – “Public companies with small market caps and no revenues should be buying public or private profitable businesses. They can achieve this by buying income producing businesses with their stock. This is not easy. Mainly because many of the penny stocks and micro-cap companies with little to no revenues have market illiquidity.”
Learn more HERE.